Libor Scandal: The Most Outrageous Exchanges Between Traders

Following the news of the Royal Bank of Scotland's £400m fine for its role in the London inter bank offer rate (scandal), much laughter has been heard around the city after the regulator published some of the more amusing exchanges between traders.

While the issue of Libor fixing for their own ends is deadly serious, and cost the public an enormous amount of money, the email exchanges range from the amusing to the banal - and they all appear to have appalling spelling...

From 20 August 2007:

Senior Yen Trader: the whole HF (hedge fund) world will be kissing you instead of calling me if libor move lower

Yen Trader 1: ok, i will move the curve down 1bp maybe more if I can

Senior Yen Trader: maybe after tomorrow fixing hehehe

Yen Trader 1: fine will go with same as yesterday then

Senior Yen Trader: cool

Yen Trader 1: maybe a touch higher tomorrow

From 20 August 2007:

Senior Yen Trader: this libor setting is getting nutss

Bank A Trader: im puzzled as to why 3m libor fixing not coming off after the FED action

Bank B Trader: [UBS] is lending dolls through my currencies in 3 month do u see him doing the same in urs

Senior Yen Trader: yes he always led usd in my mkt the jpy libor is a cartel now ... its just amazing how libor fixing can make you that much money ... its a cartel now in london they smack all the 1yr irs ..and fix it very high or low

Barclays, which was also hit with a £290 million fine because of its involvement in the Libor scandal, also had its emails investigated, revealing promises of Bollinger, coffees and affectionately dubbing a banker "big boy".

In one request for a change to the Libor, a trader said: "Please feel free to say 'no'. Coffees will be coming your way either way, just to say thank you for your help in the past few weeks".

To which the Barclays submitter responded: "Done, for you big boy."

In a telephone conversation a trader complained to a manager that the Barclays employee was submitting "the highest Libor of anybody".

He added: "He's like, 'I think this is where it should be'. I'm like, 'Dude, you're killing us'."

The trader said that he had "begged" the submitter to put in a low rate and the submitter had said he would "see what I can do".

After one employee responded favourably to a trader's request to lower the Libor, the trader came back: "When I retire and write a book about this business your name will be written in golden letters."

An external trader emailed another trader at Barclays to state, "If it (Libor rate) comes in unchanged I'm a dead man".

The Barclays trader said he would "have a chat" and the submission was later lowered.

The external trader thanked the Barclays trader and added: "Dude. I owe you big time! Come over one day after work and I'm opening a bottle of Bollinger."

And UBS, which was fined £490m for its involvement in Libor fixing, was also lampooned for its traders' emails.

In one exchange on 18 July 2007, Broker B contacted a submitter at a Panel Bank 1 asking about Japanese Libor submissions that the bank was going to contribute, saying that the request had come from a trader - Trader A - at UBS.

Panel Bank 1 submitter: Alright, well make sure he [Trader A] knows

Broker B: Yeah, he will know mate. Definitely, definitely, definitely

Panel Bank 1 submitter: You know, scratch my back yeah an all

Broker B: Yeah oh definitely, yeah, play the rules.

And on 14 July 2007, Trader A requested a figure of 6m, calling him a "Superman" and asking him to "BE A HERO TODAY". Broker F responded: "ill try mate ... as always."